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Bitcoin continues to eye its next target, with analysts now at loggerheads over whether the flagship crypto asset will attain the milestone.
The leading cryptocurrency rallied close to $100,000 last week, with notable crypto participants speculating it would attain the milestone. However, Bitcoin stalled at $99,662 for several reasons.
Reasons Bitcoin Stalled Before $100,000
Notably, a recent analysis has suggested notable impediments to Bitcoin’s push to $100,000. Per a CNBC report, selling pressure from long-term Bitcoin holders (LTHs) was a significant constraint in the asset’s path.
An earlier The Crypto Basic report confirmed this analysis, as LTHs cashed in over $60 billion worth of Bitcoin as the asset neared the psychological price mark. Notably, this figure accounted for 21% of the total LTH’s stash.
The CNBC report also pointed to the debut of the options contract for Bitcoin spot exchange-traded funds (ETFs). The US Options Clearing Corporation (OCC) announced that options of the highly in-demand ETFs could launch, with that of BlackRock debuting on November 19.
Notably, the options contract allows users to bet on price changes of the spot ETFs without actual exposure to the products. Hence, the report believes it would lower the Bitcoin investment vehicle inflows.
Analyst Split on Bitcoin to $100,000
While the asset consolidates above $90,000, analysts are at loggerheads about Bitcoin’s potential rise to $100,000. The report shows commentators have conflicting opinions as to whether the premier asset would attain a six-figure valuation.
For context, David Morrison, the senior market analyst at Trade Nation, stated that $100,000 has become almost insurmountable for Bitcoin. He described the price mark as “a high hurdle” and “a barrier for further gains.”
Furthermore, George Milling-Stanley, a chief gold strategist, shares Morrison’s idea. He gave a pessimistic assessment of Bitcoin, insisting it gave investors a false sense of security.
Meanwhile, the report argues that Bitcoin will surge past $100,000 if US President-elect Donald Trump implements only a fraction of his promises to the crypto sector. Notably, the pro-Bitcoin president promised to facilitate a friendly environment for the industry and create a Bitcoin Treasury reserve.
In the meantime, Bitcoin trades at $95,835, about 4.3% away from the $100,000 price mark.